Groupon comeback? Shares up 35% since May

On-line coupon and deals site Groupon has proven to be a bit of an early summer bargain. After hitting an 18-month low a 52-week low of $5.18 on May 7, Groupon’s up 35% to $7.08.

Shares gained 5.5% Monday and another 8% Tuesday, prompted by Piper Jaffray analyst Gene Munster, who said in a research report that the number of Groupon’s s quarterly deal offerings – 200,000 in the first quarter – could jump to 500,000 within three to four years.

Munster has a $16 price target on Groupon. But investors have been repeatedly burned by Groupon. After its $20 IPO in November 2011, shares peaked at $29.52. It’s mostly been downhill since. By November 2012, Groupon had sunk to about $2.60. Improved prospects, a new business model and the ouster of CEO Andrew Mason helped Groupon rebound. By last September, shares peaked at $12.76. But wider-than-expected losses pummeled the stock again.

The company has also been the butt of jokes, some of its own doing. Mason tweeted goofily about his 2013 firing. And in February, Groupon rewrote U.S. history with a President’s Day marketing gaffe, calling Alexander Hamilton, the nation’s first Treasury Secretary, “undeniably one of our greatest presidents.” Groupon later claimed its President Hamilton promotion was an intentional stunt.

Investment skeptics may also note that despite its recent gains, Groupon shares have lost nearly 45% year-to-date. Still, Munster’s $16 price target would mean a rise of nearly 130% over current levels. That’s a deal some investors might be emboldened to take a flier on.